Yesterday I wrote about Singapore Airlines’ precipitous drop in profits. One more, albeit smaller, reason for the decline: lackluster demand for premium economy seats at a premium price.
Singapore recently resumed “ultra-longhaul” flights from Los Angeles and Newark. The carrier also serves San Francisco nonstop and will start service to Seattle next year. All of these flights except Seattle operate using specially-configured A350-900ULRs featuring only 67 seats in business class and 94 seats in premium economy class.
While Singapore is having no trouble selling its business class seat, it is struggling to sell the premium economy seats, at least a prices that command a premium over the competition. For example, fly from New York to Singapore and you can expect to pay the same price for premium economy on Cathay Pacific via Hong Kong as the nonstop flight on Singapore Airlines. At this moment, Singapore Airlines has not been successful in charging a premium for the nonstop flight. The goal is at least a 20% premium. Right now, you can still score round-trip tickets from New York to Singapore during the peak holiday travel period for $1,230.17 round-trip.
Singapore Airlines Executive Vice President Commercial Mak Swee is very diplomatic in explaining that some travelers are not “entirely familiar” with the product, thinking that it is simply economy class with extra legroom. And while the Premium Economy seat is far closer to economy class than business class, it does offer significantly better legroom, recline, and enhanced service and meals onboard.
When Singapore last attempted nonstop flights between Singapore and Newark/Los Angeles, it used A340-500s. Initially, those aircraft featured a mix of business class and premium economy (then called “Executive economy”), but later switched to all business class. This time, Singapore hopes it has struck the right balance between business and premium economy.
CONCLUSION
I’ve done my fair share of ultra-longhaul flights and prefer them to connections that break up the trip but add to overall travel time. Even so, I would never go out of my way to fly such a long flight in premium economy. Since I cannot sleep in these seats, I’d just as soon break up the trip if I was unable to upgrade.
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image: Singapore Airlines
I think it’s quite simple: people want the cheapest fares. Even if it’s a 20% premium for nonstop, it has to be 20% on top of the cheapest fares NYC-SIN. Simple solution: add regular economy. If United can handle two daily 17.5 hour flights from SFO with economy, why can’t Singapore for only 1-2 hours longer of a flight from EWR/LAX?
Perhaps if they dropped “Economy” from the product name and improved the soft product ever so slightly (maybe somewhat better food) they would have better luck in marketing and selling it.
That’s really not a bad idea. Like Turkish used to do with “Comfort” class.
But Turkish got rid of comfort class. EVA calls its premium Y product elite class.
Quick correction. According to Ben their flight to Seattle will be operated by a normal A350: https://onemileatatime.com/singapore-airlines-seattle-awards/
Thanks cbw!
The pictures make it look much more like an economy product than a product that is premium. I think for US customers especially who aren’t up to date on all the latest seats you want your product to look like a domestic first class product. I think customers understand what that is. If you look at Delta or AA or even Norwegian or Scoot premium seats you see them and think, ok, I know what this is. All the pictures of the 350 cabin I have seen don’t give this impression at all except for the single seats near the aft lav.
It looks like a big cabin jammed with economy seating like most passengers are used to and with no economy seats on the plane to compare to it’s impossible to tell what 17 inch width or footrests really mean.
From pictures alone for the non savvy traveler thinking about his or her back this just doesn’t look all that different from the economy section of a UA flight from SIN to SFO in the 787.
I just flew SQ21 in premium economy, and I wouldn’t do it again. Not in premium economy. I secured one of the six solo window seats, and I thoroughly enjoyed the novelty of flying the longest flight. But the premium economy seat was not comfortable…not for an 18-hr flight. And it would be siginificantly more uncomfortable if you don’t score a solo seat and have to endure sitting next to someone for that long. I’d break up the trip and take a one-stop connection if flying economy.
I think another factor is SQ premium economy seats are quite sub-par. They have gone with 8-across premium economy on the A350 which is very tight compared to 8-across on a 777 and 7-across on 787 aircraft that is standard on most airlines.
Cathay also went for this layout on their A350s and anecdotally I know many people that are aware of this and generally unhappy with the seats as compared to their 777 product. On their London services, the LGW-HKG flight which is operated on an A350 is often noticeably cheaper than any of the LHR flights (all operated on 777) whereas I don’t see the same discounts in business. This could suggest they already have to compete on price with their 359 premium economy product.
@kerry you’re right, the seats are subpar. This is SQ flying the world’s longest flight…the least they could have done was to install 7-across to justify the premium they’re charging. I think SQ blew it by penny pinching on the seat when they could have done something to blow competition out of the water. As it stands, the current A350 ULR seats not only lacks that wow factor, it’s just not comfortable.
*the LGW/HKG Service is generally noticeably cheaper in premium economy, that was meant to read.
If United could not fill a 787 with economy seats at fairly decent prices out of LAX, why should Singapore expect to fill premium seats at a much higher price?
The real thing about PE is seat *width*. I understand smaller guys like Ben and Matt don’t consider this, but as a 6’2 man, my shoulders are ALWAYS in someone’s seat (no, I’m not fat in the slightest).
Odd how they don’t market it either. I’d rather have 19″ width/32″ pitch than 17″ width/35″ pitch.
I wish aviation writers would include width in all discussions of economy seats. It is critical. I avoid 10-across 777 seating because it is so horribly uncomfortable no matter what pitch. So when considering premium economy options width needs to be one of the metrics available too.
The feedback I have had from passengers flying SQ premium economy is that it’s not so premium (especially the catering).
Part of the reason they have gone with such a wierd pairing of only business and premium economy on a long flight I think would be weight (maybe?)
I don’t see why they think they “deserve” a premium.
Unless Singapore is your final destination you are still connecting. As a customer I simply don’t see any value…
At the moment with their (arguably) promotional PE fares, I’d say the nonstop experience is better. More people prefer a stop because of necessity considering that seats are getting more cramped and the experience is getting less comfortable in economy than ever before.
Would I book and fly PE again nonstop? Yes, at current prices. If they raised fares to the premium they want, I’ll have to think twice.